FACT SHEET

Net Neutrality

“…has transformed our nation’s economy, culture, and democracy…[and] has been a launching pad for innumerable creative and entrepreneurial ventures; enabled businesses small and large, wherever located, to reach customers around the globe; allowed individuals in remote parts of America to access information and services previously unavailable to them; and made it possible for the voice of a single citizen—whether in the form of a blog post, online video, or tweet—to influence world events.”1

Given the significance of the Internet, preserving its “openness” – an idea often referred to as “network neutrality” or “net neutrality” – has been a long-standing issue. The debate began in the late 1990s/early 2000s when consumers and online service providers began raising concerns about the ability of broadband network operators –wireline providers such as Comcast and Verizon, and wireless providers such as AT&T Wireless or Verizon Wireless – to block or degrade content being provided over their networks. In the past few years, policymakers have been considering whether rules should be adopted to prohibit or restrict carriers from blocking or otherwise discriminating against services, applications and devices being used on their networks, and if so, what types of carrier actions those rules should prohibit.

Whether some broadband services, referred to as “managed” or “specialized” services, should be exempt from net neutrality regulation.

Broadband carriers’ need to try new business models for managing congestion.

Whether there is enough broadband competition to make regulation unnecessary.

TAP Academics researching net neutrality include:

Jay Pil Choi of Michigan State University explores how net neutrality rules could affect the growth of broadband services.

Nicholas Economides teaches at NYU’s Stern School of Business. He writes about how consumers would be affected by changes in broadband prices.

Larry Lessig teaches at Harvard Law School. He has written comments to the FCC supporting net neutrality.

“As much as anything else, the economic success of the Internet comes from its architecture. The architecture, and the competitive forces it assures, is the only interesting thing at stake in this battle over ‘network neutrality.’” From his article “Another Deregulation Debacle,” The New York Times, 8/10/2010

Tim Wu, currently on leave from Columbia University while he serves as a senior advisor with the Federal Trade Commission in the Office of Policy Planning, testified in favor of net neutrality before the FCC and Congress, emphasizing how neutrality could encourage innovation.

Christopher Yoo of the University of Pennsylvania Law School writes about how net neutrality would affect networks.

“The vigor with which the FCC has pursued allegations of improper network management suggests that the regulatory structure may already be in place to ensure that consumers are both protected and able to enjoy the Internet’s tremendous promise in the future.” Quoted inCED Magazine, 7/31/2010

Recent Developments

In 2005, the Federal Communications Commission (FCC) issued a Broadband Policy Statement, listing four principles to support an open Internet. In 2009 the FCC proposed adopting specific net neutrality rules. But a decision of the DC Circuit Court called into question the FCC’s authority to regulate broadband networks, including its authority to set net neutrality rules.2 The FCC, the industry, and Capitol Hill tried to reach consensus on net neutrality rules,3 but failed. On December 21, 2010, the FCC announced its Open Internet Order, which Commissioners Baker and McDowell dissented. On November 20, 2011, the Order went into effect, including rules that require broadband internet providers to disclose information about network management, and restrict broadband internet providers from unreasonable discrimination or blocking access to legal content and applications. The rules also aim to limit “pay for priority” service. The rule requires mobile broadband carriers to follow transparency and basic no blocking rules. Verizon Communications is suing the FCC, claiming the agency does not have authority to issue the rules. Free Press, a nonprofit organization, as well as several other organizations, filed lawsuits against the FCC arguing that the rules do not go far enough in furthering the promise to preserve an open Internet. All of the various appeals filed around the country have now been consolidated in the United States Court of Appeals for the District of Columbia in Washington, D.C. It will be well into next year, after written briefs are filed and oral arguments are heard, before the D.C. Circuit issues an opinion on the various appeals.
____________2 Cite U.S. Court of Appeals for the 9th District, Comcast v. FCC decision, April 2010.3 See, e.g., CITE Verizon – Google Legislative Framework proposal, August 2010.

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